Critical Contrast: Selectis Health (OTCMKTS:GBCS) vs. TPG RE Finance Trust (NYSE:TRTX)

TPG RE Finance Trust (NYSE:TRTX) and Selectis Health (OTCMKTS:GBCS) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, dividends, valuation, institutional ownership and profitability.

Insider and Institutional Ownership

57.1% of TPG RE Finance Trust shares are owned by institutional investors. 2.5% of TPG RE Finance Trust shares are owned by company insiders. Comparatively, 15.2% of Selectis Health shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares TPG RE Finance Trust and Selectis Health’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TPG RE Finance Trust	21.79%	7.57%	2.27%
Selectis Health	-14.37%	N/A	-14.59%

Dividends

TPG RE Finance Trust pays an annual dividend of $0.96 per share and has a dividend yield of 11.5%. Selectis Health pays an annual dividend of $0.04 per share and has a dividend yield of 1.8%. TPG RE Finance Trust pays out 128.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Selectis Health pays out -2.2% of its earnings in the form of a dividend.

Volatility & Risk

TPG RE Finance Trust has a beta of 2.23, indicating that its stock price is 123% more volatile than the S&P 500. Comparatively, Selectis Health has a beta of -0.27, indicating that its stock price is 127% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for TPG RE Finance Trust and Selectis Health, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TPG RE Finance Trust	0	0	5	0	3.00
Selectis Health	0	0	0	0	0.00

TPG RE Finance Trust presently has a consensus price target of $9.40, suggesting a potential upside of 12.24%. Given TPG RE Finance Trust’s stronger consensus rating and higher probable upside, analysts clearly believe TPG RE Finance Trust is more favorable than Selectis Health.

Earnings and Valuation

This table compares TPG RE Finance Trust and Selectis Health”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TPG RE Finance Trust	$151.19 million	4.49	-$116.63 million	$0.75	11.17
Selectis Health	$36.78 million	0.18	-$3.97 million	($1.79)	-1.23

Selectis Health has lower revenue, but higher earnings than TPG RE Finance Trust. Selectis Health is trading at a lower price-to-earnings ratio than TPG RE Finance Trust, indicating that it is currently the more affordable of the two stocks.

Summary

TPG RE Finance Trust beats Selectis Health on 13 of the 16 factors compared between the two stocks.

About TPG RE Finance Trust

TPG RE Finance Trust, Inc., a commercial real estate finance company, originates, acquires, and manages commercial mortgage loans and other commercial real estate-related debt instruments in the United States. It invests in commercial mortgage loans; subordinate mortgage interests, mezzanine loans, secured real estate securities, note financing, preferred equity, and miscellaneous debt instruments; and commercial real estate collateralized loan obligations and commercial mortgage-backed securities secured by properties primarily in the multifamily, life science, mixed-use, hospitality, self storage, industrial, and retail real estate sectors. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. TPG RE Finance Trust, Inc. was incorporated in 2014 and is based in New York, New York.

About Selectis Health

Selectis Health owns and/or operates healthcare facilities in Arkansas, Georgia, Ohio, and Oklahoma, providing a wide array of living services, speech, occupational, physical therapies, social services, and other rehabilitation and healthcare services. Selectis focuses on building strategic relationships with local communities in which its partnership can improve the quality of care for facility residents. With its focused growth strategy, Selectis intends to deepen its American Southcentral and Southeastern market presence to better serve the aging population along a full continuum of care.